Jarvis Network Integrates Chainlink Oracles to Power their Synthetic Assets Protocol and Dex
We are excited to announce that Jarvis Network has successfully integrated Chainlink live on the Ethereum Mainnet. Jarvis is leveraging Chainlink’s market-leading Price Feed Oracles in our Synthereum protocol, and in Jarvis Exchange, our proprietary dApp.
For its soft-launch, the liquidity within the protocol remains very limited, and only the Jarvis team can provide liquidity; these limits will be lifted after the completion or various security audits.
Jarvis’ mission is to enable a robust and liquid asset issuance layer for traditional assets within the DeFi ecosystem, with a primary focus on issuing various synthetic fiat assets. Eventually, this will allow the onboarding of millions of new users and grow DeFi to the next level.
Through Chainlink’s highly secure, reliable, and scalable decentralized oracle networks, users are now able to buy, sell and exchange synthetic assets that track the most up-to-date market price of various forex exchange trading pairs, without slippage. The initial set of Chainlink Price Feeds being used on the Synthereum mainnet include three european fiat currencies (EUR/USD, GBP/USD and CHF/USD), with the goal of adding more currencies.
These Price Feed oracles are powered by Chainlink’s recently launched Off-Chain Reporting protocol, a major scalability upgrade that lowered the on-chain gas costs of oracle updates by up-to 90%. Through this scalability upgrade, the Synthereum protocol will have extremely fresh financial market data reflective of the current global, volume-adjusted exchange rates. Specifically, Chainlink’s commodities and forex Price Feeds update every 0.3% deviation in the previous price, the lowest update threshold of any price oracle on Ethereum today.
In addition to supporting our current assets, we will leverage Chainlink OCR to rapidly expand the selection of synthetic assets available on Synthereum, with the primary focus to bring Forex to DeFi. Indeed, since DeFi is a borderless and global financial system, users should be provided with many alternatives to the hegemonic USD. The Synthereum protocol is well-positioned to provide such alternatives with a deep liquidity. In fact, its particular design allows the trading of synthetic assets with no slippage, but also allows any synthetic assets to be exchanged for any ERC20 tokens with the lowest slippage possible.
Following a successful implementation of a Forex layer, Synthereum will be using many of the existing and upcoming Chainlink Price Feeds to bring more assets on Ethereum, such as commodities, metals, stocks and indexes.
Understanding Jarvis Network and Synthereum
Jarvis Network is a set of protocols on Ethereum that allows anyone to gain exposure to the price of any traditional or digital asset against liquidity pools. One of those protocols is Synthereum, which enables users to mint synthetic through various mechanisms. The first release of the protocol introduces a mechanism to mint an asset against a counterparty: users deposit USDC in a liquidity pool, and receive back an equivalent value of synthetic tokens.
Under the hood, this synthetic asset is over-collateralized by both the users USDC and by the one idling in the pool, and supplied by liquidity providers. A network of incentivized liquidators insure that the assets remain over-collateralized.
For example, a user might deposit 100 USDC and receive 82.52 jEUR — a synthetic Euro token pegged to their underlying real-world value (1jEUR = 1EUR). If the minimum collateralization ratio is 150%, then the 100 USDC deposit is matched by 50 USDC from the liquidity provider. The user and the liquidity provider are each other’s counterparty, but only the latter can be liquidated and therefore receives a fee by taking on all the risk. The overall design allows users to seamlessly convert their minted tokens into any other synthetic asset with zero slippage.
A key feature, unique to Jarvis Exchange, our proprietary Dex to interact with Synthereum, is that synthetic assets can be seamlessly exchanged for any ERC20 token on DEXs like Uniswap. To do so, users send their synthetic assets to the Synthereum contract, which unlocks an equivalent amount of USDC and sends it to a Uniswap pool where it’s exchanged for any other ERC20. This significantly expands the utility of synthetic assets on Synthereum by leveraging the existing USDC liquidity within the DeFi ecosystem. In fact, it provides each synthetic asset with the same liquidity as USDC.
However, in order to ensure that synthetic assets are minted at a value equal to their USDC deposit, exchanged to another synthetic asset at the current market rate, and redeemed for an equivalent amount of USDC, the Synthereum protocol requires a secure source of price data for each asset supported. Because blockchain networks cannot inherently fetch data from external resources, specifically aggregated price data, we required a “blockchain oracle” to bridge this gap.
Securing and Scaling the Synthereum with Chainlink
We selected Chainlink as our go-to oracle solution because we found it to be the most secure, reliable, and time-tested oracle network on the market. Not only does it provide a wide range of easily integratable Price Feed oracle networks already live on mainnet, but it offers an established framework for quickly launching new ones.
All Chainlink Price Feeds are secured by a decentralized network of security reviewed and Sybil-resistant oracle node operators, guaranteeing continual uptime and tamper-resistance. Each node operator fetches data from multiple premium data aggregators, with node responses then further aggregated to generate a single volume-adjusted price update by the oracle network. This means that each data point referenced during the minting and exchanging of synthetic assets on Synthereum is highly accurate, available, and resistant to various forms of data manipulation (i.e., such as those induced by flash loans).
One of the other significant factors in selecting Chainlink as our price feed solution was its extensive scalability, specifically the ability to access high frequency on-chain updates at a cost-efficient price. The result is Synthereum being able to support markets more sensitive to price movements like trading between fiat currencies. Such precision means that users can mint and exchange synthetic tokens with even less exchange rate slippage, subsequently, further protecting liquidity providers too.
Chainlink Price Feed Oracles will power all existing and future synthetic assets within Synthereum and the wider Jarvis Network, leading to a consistent level of oracle security and reliability for all users throughout the ecosystem. We plan to use Chainlink to grow our existing synthetic asset base, as well as to support more exotic synthetic assets, such as tokens that track asset volatility, the total value locked in DeFi, and more.
“Chainlink’s Price Feeds play a foundational role within the Jarvis Network, ensuring that all synthetic assets on Synthereum can be acquired and traded at their true market value with zero slippage,” stated Pascal Tallarida, CEO of Jarvis Network. “Thanks to the Chainlink OCR upgrade, we can offer the most refined markets on Ethereum for switching exposure between a wide variety of unique assets.”
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
About Jarvis Network
Jarvis Network is a set of protocols on Ethereum allowing anyone to gain exposure to the price of any traditional or digital assets with stablecoins, against liquidity pools. Jarvis is launching two protocols, Margineum, an off-chain margin trading protocol, and Synthereum, an on-chain synthetic asset protocol built on UMA. Jarvis will also launch two dApps, Jarvis Market and Jarvis Exchange, to respectively interact with Margineum and Synthereum. The protocols are governed by the Jarvis DAO and its token the $JRT.
Jarvis mission is to make DeFi more accessible and global.